Airlines see profits dive by 50 percent
Source: Bloomberg News |
April 14, 2012, Saturday
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Print Edition
Print Edition
CHINA Southern Airlines Co and China Eastern Airlines Corp both said yesterday that first-quarter profits probably fell more than 50 percent, because of slower economic growth, higher fuel prices and smaller foreign-exchange gains.
Profits at China Southern, the nation's biggest carrier, dropped from 1.24 billion yuan (US$197 million) a year earlier, it said in a preliminary result report, citing Chinese accounting standards.
Second-ranked China Eastern said separately that net income fell from 1.01 billion yuan. Neither company gave sales figures.
Chinese carriers had to contend with fuel prices that averaged 9.1 percent higher than a year earlier in Singapore trading and an end to large gains from yuan appreciation.
China Southern expected a "substantial decrease" in exchange gains. The Chinese currency weakened against the US dollar in the three months ended March, the first decline since the fourth quarter of 2009.
China Southern filled a smaller percentage of seats in the period than a year ago, as economic growth cooled to the slowest in three years, damping demand for flights.
The airline filled 79.4 percent of seats in the first quarter, a 0.5-percentage-point decline from a year earlier, according to an earlier operational update. Passenger numbers rose 9 percent to 20.4 million. China Eastern carried 4.9 percent more travelers in the period.
Profits at China Southern, the nation's biggest carrier, dropped from 1.24 billion yuan (US$197 million) a year earlier, it said in a preliminary result report, citing Chinese accounting standards.
Second-ranked China Eastern said separately that net income fell from 1.01 billion yuan. Neither company gave sales figures.
Chinese carriers had to contend with fuel prices that averaged 9.1 percent higher than a year earlier in Singapore trading and an end to large gains from yuan appreciation.
China Southern expected a "substantial decrease" in exchange gains. The Chinese currency weakened against the US dollar in the three months ended March, the first decline since the fourth quarter of 2009.
China Southern filled a smaller percentage of seats in the period than a year ago, as economic growth cooled to the slowest in three years, damping demand for flights.
The airline filled 79.4 percent of seats in the first quarter, a 0.5-percentage-point decline from a year earlier, according to an earlier operational update. Passenger numbers rose 9 percent to 20.4 million. China Eastern carried 4.9 percent more travelers in the period.
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